MSFU vs. TMF

Last updated Jun 4, 2026

MSFU (Direxion Daily MSFT Bull 2X Shares) and TMF (Direxion Daily 20-Year Treasury Bull 3X) are both exchange-traded funds - MSFU is a Leveraged Equities fund tracking the Microsoft Corporation (150%), while TMF is a Leveraged Bonds fund tracking the NYSE 20 Year Plus Treasury Bond Index (300%). Both are passively managed. Over the past 3 years, MSFU returned -0.38%/yr vs -20.78%/yr for TMF. At a 0.05 correlation, their price movements are largely independent. MSFU charges 1.04%/yr vs 1.09%/yr for TMF.

Performance

MSFU vs. TMF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily MSFT Bull 2X Shares (MSFU) and Direxion Daily 20-Year Treasury Bull 3X (TMF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MSFU achieves a -27.75% return, which is significantly lower than TMF's -6.13% return.

MSFU

• 1D: -6.29%
• 1M: 5.53%
• YTD: -27.75%
• 6M: -26.97%
• 1Y: -26.68%
• 3Y*: -0.38%
• 5Y*: —
• 10Y*: —

TMF

• 1D: -1.14%
• 1M: 1.22%
• YTD: -6.13%
• 6M: -11.63%
• 1Y: 0.90%
• 3Y*: -20.78%
• 5Y*: -30.52%
• 10Y*: -16.56%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MSFU vs. TMF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
MSFU Direxion Daily MSFT Bull 2X Shares	-27.75%	13.36%	5.80%	83.04%	-13.28%
TMF Direxion Daily 20-Year Treasury Bull 3X	-6.13%	-2.94%	-35.95%	-13.01%	-27.41%

Correlation

The correlation between MSFU and TMF is 0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.07
Correlation (3Y) Calculated over the trailing 3-year period	0.04
Correlation (All Time) Calculated using the full available price history since Sep 8, 2022	0.05

MSFU vs. TMF - Sectors Allocation Comparison

Sectors	MSFU	TMF
Technology	100.0%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	18.7%
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

MSFU vs. TMF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MSFU

MSFU Risk / Return Rank: 5
MSFU Sharpe Ratio Rank: 4
MSFU Sortino Ratio Rank: 5
MSFU Omega Ratio Rank: 4
MSFU Calmar Ratio Rank: 5
MSFU Martin Ratio Rank: 5

TMF

TMF Risk / Return Rank: 9
TMF Sharpe Ratio Rank: 9
TMF Sortino Ratio Rank: 9
TMF Omega Ratio Rank: 9
TMF Calmar Ratio Rank: 9
TMF Martin Ratio Rank: 9

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MSFU vs. TMF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily MSFT Bull 2X Shares (MSFU) and Direxion Daily 20-Year Treasury Bull 3X (TMF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	MSFU	TMF	Difference
Sharpe ratio Return per unit of total volatility	-0.53	0.03	-0.57
Sortino ratio Return per unit of downside risk	-0.48	0.25	-0.73
Omega ratio Gain probability vs. loss probability	0.94	1.03	-0.09
Calmar ratio Return relative to maximum drawdown	-0.45	0.03	-0.48
Martin ratio Return relative to average drawdown	-0.86	0.08	-0.94
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSFU vs. TMF - Sharpe Ratio Comparison

The current MSFU Sharpe Ratio is -0.53, which is lower than the TMF Sharpe Ratio of 0.03. The chart below compares the historical Sharpe Ratios of MSFU and TMF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MSFU	TMF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.53	0.03	-0.57
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.66	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	-0.38	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.19	-0.14	+0.33

Drawdowns

MSFU vs. TMF - Drawdown Comparison

The maximum MSFU drawdown since its inception was -59.83%, smaller than the maximum TMF drawdown of -92.89%. Use the drawdown chart below to compare losses from any high point for MSFU and TMF.

Drawdown Indicators

	MSFU	TMF	Difference
Max Drawdown Largest peak-to-trough decline	-59.83%	-92.89%	+33.06%
Max Drawdown (1Y) Largest decline over 1 year	-59.83%	-26.51%	-33.32%
Max Drawdown (3Y) Largest decline over 3 years	-59.83%	-56.31%	-3.52%
Max Drawdown (5Y) Largest decline over 5 years	—	-88.81%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-92.89%	—
Current Drawdown Current decline from peak	-44.08%	-92.23%	+48.15%
Average Drawdown Average peak-to-trough decline	-16.51%	-43.63%	+27.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	30.95%	11.49%	+19.46%

Volatility

MSFU vs. TMF - Volatility Comparison

Direxion Daily MSFT Bull 2X Shares (MSFU) has a higher volatility of 19.77% compared to Direxion Daily 20-Year Treasury Bull 3X (TMF) at 8.09%. This indicates that MSFU's price experiences larger fluctuations and is considered to be riskier than TMF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSFU	TMF	Difference
Volatility (1M) Calculated over the trailing 1-month period	19.77%	8.09%	+11.68%
Volatility (6M) Calculated over the trailing 6-month period	45.33%	19.01%	+26.32%
Volatility (1Y) Calculated over the trailing 1-year period	50.14%	28.76%	+21.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	46.32%	46.75%	-0.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	46.32%	43.92%	+2.40%

MSFU vs. TMF - Expense Ratio Comparison

MSFU has a 1.04% expense ratio, which is lower than TMF's 1.09% expense ratio.

Dividends

MSFU vs. TMF - Dividend Comparison

MSFU's dividend yield for the trailing twelve months is around 10.95%, more than TMF's 4.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
MSFU Direxion Daily MSFT Bull 2X Shares	10.95%	8.15%	7.00%	2.11%	0.54%	0.00%	0.00%	0.00%	0.00%	0.00%
TMF Direxion Daily 20-Year Treasury Bull 3X	4.15%	4.06%	4.29%	2.82%	1.62%	0.13%	2.23%	0.94%	1.49%	0.41%

Frequently Asked Questions

Can I hold both MSFU and TMF in my portfolio?

MSFU and TMF have a correlation of 0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSFU or TMF?

MSFU has higher volatility (19.77%) compared to TMF (8.09%). In terms of maximum drawdown, MSFU dropped -59.83% vs TMF's -92.89%.

Which ETF is better, MSFU or TMF?

On 3-year performance, MSFU leads with -0.38% vs -20.78% for TMF. On fees, MSFU is cheaper at 1.04% per year. On volatility, TMF has been the lower-risk option at 8.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSFU or TMF?

Over the 3-year period, MSFU has performed better with a -0.38% return vs -20.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSFU or TMF?

MSFU is cheaper with a 1.04% expense ratio, compared with 1.09% for TMF.

Which ETF pays a higher dividend yield, MSFU or TMF?

MSFU has the higher dividend yield at 10.95%, compared with 4.15% for TMF.

What is the main difference between MSFU and TMF?

MSFU is categorized as Leveraged Equities, while TMF is Leveraged Bonds. MSFU tracks Microsoft Corporation (150%), while TMF tracks NYSE 20 Year Plus Treasury Bond Index (300%). Their fees differ too: 1.04% for MSFU and 1.09% for TMF.

Which has better risk-adjusted returns?

TMF currently has the higher Sharpe Ratio (0.03 vs -0.53), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.